Financing Receivables

The Company had total financing receivables of $391.7 million and $376.1 million at December 31, 2012 and 2011, respectively, which consisted of the following:



Balance Sheet Classification	December 31, 2012		December 31, 2011
	(Dollars in millions)
Accounts receivable, net	$	0.7	$	51.3
Other current assets	—		65.0
Investments and other assets	391.0		259.8
Total financing receivables	$	391.7	$	376.1

The Company periodically assesses the collectability of accounts and loans receivable by considering factors such as specific evaluation of collectability, historical collection experience, the age of the receivable and other available evidence. Below is a description of the Company's financing receivables at December 31, 2012.

Codrilla Mine Project. In 2011, a wholly owned subsidiary of PEA-PCI, then Macarthur Coal Limited, completed the sale of its 85% interest in the Codrilla Mine Project to participants of the Coppabella Moorvale Joint Venture (CMJV) where PEA-PCI sold down its interest in the Codrilla project to the CMJV (Codrilla sell down) so that, following completion of the sale, ownership of the Codrilla Mine Project reflected the existing ownership of the Coppabella and Moorvale mines with PEA-PCI retaining a 73.3% ownership. Prior to the acquisition of PEA-PCI by the Company, consideration of $15 million Australian dollars was received by PEA-PCI upon completion of the Codrilla sell down, representing 20% of the agreed price. Two installments, for which the Company holds non-interest-bearing receivables, are due upon the completion of certain milestones. The first installment, with 40% due on the granting of the related mining lease, was received during the three months ended September 30, 2012. The final 40% is due upon the mine's first coal shipment. At December 31, 2011, the first installment of $34.2 million was included in "Accounts receivable, net" in the consolidated balance sheet which was collected from CMJV participants in the third quarter 2012 when the mining lease was granted and is reflected in "Proceeds from disposal of assets, net of notes receivable" in the consolidated statements of cash flows for the year ended December 31, 2012. There are currently no indications of impairment on the remaining installment and the Company expects to receive full payment upon the mine's first shipment. The remaining balance associated with these receivables is recorded in "Investments and other assets" which was $33.6 million and $35.6 million at December 31, 2012 and 2011, respectively, in the consolidated balance sheets.

Middlemount Mine. The Company periodically makes loans to the Middlemount Mine joint venture (Middlemount) for purposes of funding capital expenditures and working capital requirements, pursuant to the related shareholders’ agreement. Middlemount intends to pay down the loans as excess cash is generated as required by the shareholders’ agreement. The loans bear interest at a rate equal to the monthly average 30-day Australian Bank Bill Swap Reference Rate plus 3.5%. The Company reviewed the loans for collectability and, as of December 31, 2012, expects to receive full payment of amounts due. "Other current assets" included $65.0 million at December 31, 2011, which was reclassified to "Investments and other assets" during the year ended December 31, 2012. "Investments and other assets" included $357.4 million and $224.2 million at December 31, 2012 and 2011, respectively, in the consolidated balance sheets related to these loans.

Other Financing Receivables. From time to time, the Company may enter into transactions resulting in accounts or notes receivable held by the Company, which have been reflected in "Accounts receivable, net." These notes are generally short term in nature with positive historical collection experience and do not represent a material credit risk to the Company. During 2012, the Company collected all such receivables outstanding as of December 31, 2011.